Terms for This Sale
The following is a glossary of real estate auction terms developed by the National Association of Realtors – Real Estate Auction Committee, the National Auctioneers Association (NAA) and the NAA Education Institute. While it is a real estate glossary, most of the terms apply to all types of auctions.
AARE (Accredited Auctioneer, Real Estate)
The professional designation awarded by the National Auctioneers Association Education Institute to qualified real estate auctioneers who meet the educational and experiential requirements of the Institute and who adhere to a strict code of ethics and standards of practice.
A procedure which allows a bidder to participate in the bidding process without being physically present. Generally, a bidder submits an offer on an item prior to the auction. Absentee bids are usually handled under an established set of guidelines by the auctioneer or his representative. The particular rules and procedures of absentee bids are unique to each auction company.
A person (or entity) who does not attend the sale but submits, in advance, a written or oral bid that is the top price he or she will pay for a given property. Contact Oliver Real Estate to Arrange.
A person who acts for or in the place of another individual or entity by authority from them. Contact Oliver Real Estate to arrange.
The act or process of estimating value.
“As Is”; All properties are sold as is.
Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as “As Is, Where Is” and “In its Present Condition.”
The price of a property obtained through the auction method of marketing.
Auction Subject to Confirmation
(See “Reserve Auction”)
Auction With Reserve. This auction has a low reserve set.
An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time.
The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. This person may or may not actually call or cry the auction.
Certified Funds Bank Letter of Credit/Cash Only
A letter from a bank certifying that a named person is worthy of a given level of credit.
A prospective buyer’s indication or offer of a price he or she will pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer.
A form executed by the high bidder confirming and acknowledging the bidder’s identify, the bid price and the description of the property. Also known as Memorandum.
The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value.
The number issued to each person who registers at an auction.
Bidder’s Choice: Available on Center St. Lots
A method of sale whereby the successful high bidder wins the right to choose a property or properties from a grouping of similar or like-kind properties. After the high bidder’s selection, the property is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing a property, which is then deleted from the group and so on, until all properties are sold.
An arrangement for third-party brokers to register potential bidders for properties being sold at auction for a commission paid by the owner of the property or the auction firm.
A real estate broker who represents the buyer and, as the agent of the buyer, is normally paid for his/her services by the buyer.
Buyer’s Premium: 5% Paid in Cash/Certified funds only.
An advertised percentage of the high bid or flat fee added to the high bid to determine the total contract price to be paid by the buyer.
A Latin term meaning “let the buyer beware.” A legal maxim stating that the buyer takes the risk regarding quality or condition of the property purchased, unless protected by warranty.
The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value or when the auctioneer accepts a fictitious bid on behalf of the seller so as to manipulate or inflate the price of the property.
Conditions of Sale: This sale is Free and Clear
The legal terms that govern the conduct of an auction, including acceptable methods of payment, terms, buyer’s premiums, possession, reserves and any other limiting factors of an auction. Usually included in published advertisements or announced by the auctioneer prior to the start of the auction.
Buyers shall exercise their own Due Diligence
The process of gathering information about the condition and legal status of assets to be sold. Properties are sold free and clean of leins.
Price established by the last bidder and acknowledged by the auctioneer before dropping the hammer or gavel.
An auction conducted on the premises of the property being sold. See details of sites.
Preview: Anytime up to the auction date
Property is available for prospective buyer viewing and audits. Also known as Open House or Inspection.
Reserve: This auction has a low Reserve. However, all reasonable offers considered.
The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price.
An auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids or to withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer. See also Auction With Reserve.
Tie Bid: When two or more bidders bid exactly the same amount at the same time and must be resolved by the auctioneer.
Commonly known as the reserve price.
Buyer shall pay 5% buyers premium on top of the sale price and all transfer tax. Typically 2% of sale price.
Greenapple Participants Only:
Greenapple may be used for the sale price only. Greenapple buyers must pay the 5% bidder premium and the transfer costs in cash.
How Do I Bid and Buy At an Auction?
Created by Gian Oliver Copyright © 2018